How to record a video game (2013 Edition)

Welcome to How to Record a Video Game 2.0 - now with free software and easier steps! You can find my old post here.

Software you'll need: Open Broadcaster Software

Please note this software by default is intended for streaming to places like Twitch.tv, this tutorial and settings are for saving to a file. I upload these files to Youtube and they're full HD quality. If you try to stream using these settings it will fail.

Install OBS, nothing special there. Go to Settings -> Settings

No changes on the General tab

Encoding tab:
Uncheck "Use CBR"
Max Bitrate: 1000 (some people say to use higher values but it slows my framerate)
Check "Use Custom buffer size"
Buffer size: 0

It should look like this:
IMAGE(http://farm4.staticflickr.com/3709/10427508826_92e46e3c57_o.png)

Broadcast Settings tab:
Change Mode to "File Output only"
Set your file path and hotkeys

IMAGE(http://farm8.staticflickr.com/7432/10427508776_e87b8f726e_o.png)

Video tab:
Some people use Resolution Downscale, I like to keep mine full size. Downscaling to 720p is the most common setting with bilinear as the filter.

IMAGE(http://farm4.staticflickr.com/3762/10427645213_1fcc5019fb_o.png)

Advanced tab:
Lots of settings to fiddle with here so I won't detail them all.
Adjusting the number within "Custom x264 Encoder Settings" seems to be the biggest performance difference. The picture will look nicer with a smaller number, like 15 but my machine runs smoother at 20 and still looks good.

IMAGE(http://farm8.staticflickr.com/7423/10427520315_a3a6441e72_o.png)

This gives you a file which can be directly uploaded to Youtube. It does create large files so if you have limited bandwidth you may want to encode the file using extra software. I haven't paid for this software so I can't help you. For suggested settings though you can see Youtube's suggestions here.

I welcome other people's suggestions for improvements to this tutorial, thanks!